The URL can be used to link to this page

HRA 03/17/1994 - 6342r HOUSING AND REDEVELOPMENT AUTHORITY MEETING THURSDAY,, MARCH 17, 1994 7 :30 P.M. PUBLIC COPY CITY OF FRIDLEY A G E N D A HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, MARCH 17, 1994, 7:30 P.M. Location: Council Chambers Fridley Municipal Center CALL TO ORDER ROLL CALL APPROVAL OF MINUTES: February 3, 1994 ACTION ITEMS: CONSIDER APPROVAL OF RESOLUTION AUTHORIZING EXECUTION OF DEVELOPMENT CONTRACT, WESTMINSTER, INC. . . 1.1 -1.12 AWARD BID FOR LAKE POINTE MAINTENANCE PROJECT. . . . . . 2.1 -2.4 CONSIDER AGREEMENT FOR LEGAL SERVICES WITH CASSERLY MOLZAHN & ASSOCIATES, INC. . . . . . . 3.1 -3:35 CLAIMS AND EXPENSES . . . . . . . . . . . . . . . . . . . 4.1-4.3 INFORMATION ITEMS: UPDATE ON SCATTERED SITE PROGRAM . . . . . . . . . . . . 5.1 -5.5 1994 HOME FUND APPLICATION . . . . . . . . . . . . . . . 6.1 CONSIDER TIF REQUEST FROM SCOTT LUND . . . . . . . . . . 7.1.7.18 UPDATE ON RICE PLAZA DEMOLITION. . . . . . . . . . . 8.1 REVIEW STATUS OF SOUTHWEST QUADRANT PLANNING . . . . . . 9.1 -9.10 OTHER BUSINESS• ADJOURNMENT CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, FEBRUARY 3, 1994 CALL TO ORDER: Chairperson Commers called the February 3, 1994, Housing & Redevelopment Authority minutes to order at 7:30 p.m. ROLL CALL: Members Present: Larry Commers, Virginia Schnabel, Duane Prairie, Jim McFarland Members Absent: John Meyer Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Craig Ellestad, Accountant APPROVAL OF JANUARY 6 1994 HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Ms. Schnabel, seconded by Mr. Prairie, to approve the January 6, 1994, Housing & Redevelopment Authority minutes as written. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COM ORO DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. AWARD BID FOR DEMOLITION OF RICE PLAZA: MOTION by Mr. Prairie, seconded by Ms. Schnabel, to award the bid for the demolition of Rice Plaza to Herbst & Sons, Inc., for $22,000 and authorize the Chairperson and Executive Director to execute the contracts. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. CLAIMS AND EXPENSES: Mr. Ellestad stated they are now using computerized checks so the check numbers have changed. He added the following check: #25001 for David Fisher, part -time inspector, in the amount of $69.26. He stated the break in numbers was due to a computer error. MOTION by Mr. McFarland, seconded by Mr. Prairie, to approve the check register (checks 25001 -25013 and 25029 - 25041). UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MTG., FEBRUARY 3, 1994 - PAGE 2 3. LAKE POINTE MARKETING UPDATE: Ms. Dacy stated that Merrill Busch is preparing a draft of the direct mail brochure and is designing two 50 square foot signs. She will keep the HRA members apprised of the progress on the marketing effort. 4. UPDATE ON MEETINGS WITH HOUSING DEVELOPERS: Ms. Dacy stated staff is beginning its research on the redevelopment of the southwest quadrant by talking to professionals in the housing industry about the site and the current shape of the housing market. So far, staff has met with two interested parties and will be meeting with Larry Laukka of Laukka Development on February 22 to determine his interest in the property. Concurrent with these meetings, Mr. Burns has asked her and Jim Casserly to prepare an analysis of some of the economic and subsidy implications of the different types of development patterns. They will also look at the HRA's costs and possible tax increment. Ms. Dacy stated she may have more information for the HRA at its next meeting. Mr. Burns stated he has put together a very preliminary RFP for the southwest quadrant. He has asked Ms. Dacy and Mr. Casserly to evaluate it. It is a starting point. 5. POTENTIAL TIF REQUEST BY SCOTT LUND• Ms. Dacy stated that Scott Lund has submitted a rezoning and plat application for construction of a building on the property owned by Royal Electric and a portion of Al Schrader's property (Highway 65 and 73 1/2 Avenue behind Rapid Oil). Mr. Lund has stated that he may also apply for soil correction assistance, but staff has not received an application at this time. Mr. Commers asked staff to research and provide to the HRA information on what other developments have been proposed for this piece of property, and what problems, if any, there are on the property. 6. STATUS OF DAIRY QUEEN ACQUISITION• Ms. Dacy stated that staff has been advised by Darrell Jensen that the scheduling order previously approved by the court to resolve the Fitch condemnation is to expire. She believed the Notice of Motion and action by the Court at the end of February 1994 is to confirm the HRA's position in terms of the original amount awarded to Fitch. Mr. Jensen is saying there is no claim for additional compensation for a "going concern ". Neither Mr. Jensen or City staff has heard from Mr. Fitch or his attorney. No action is needed by the HRA at this time. 1.1 = I Community Development Department D HOUSING AND REDEVELOPMENT AUTHOR,ITI' City of Fridley DATE: March 10, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider Approval of Resolution Authorizing Execution of Development Contract for Westminster, Norwood Square, Inc. Background Westminster is proposing to construct a low income 51 unit elderly apartment project just north of St. William's Church on 5th Street. At the October 14, 1993, meeting, the HRA authorized staff to negotiate a development contract with Westminster, Inc., to provide tax increment financing assistance. for Westminster, Inc., on a pay - as- you -go basis. At the December 16, 1993, meeting, the HRA authorized staff to prepare the development contract to provide a grant rather than the pay -as- you -go approach. Proposed Development Contract Unlike other development projects with typical mortgage financing, this project is funded by a HUD "capital grant ". Westminster will make draws against the capital grant as construction precedes. The HUD funds are placed in escrow and Westminster draws against the escrow with HUD approval. The development contract has been prepared to convey the $82,000 of tax increment assistance via a land write -down structure. Westminster will be using the funds to assist them in completing a variety of improvements to the project. The development contract identifies these improvements as quality enhancements (see Schedule D of the development contract). In the past, the HRA has provided a grant when the project is completed. Because this project requires Westminster to make draws against an escrow fund, the HRA's typical grant mechanism is not useful in this case. Therefore, Casserly has prepared the contract such that the HRA would provide $32,000 in conjunction with the first draw against the capital grant. These funds are to be used 1.2 Development Contract for Westminster, Inc. March 10, 1994 Page 2 for the Category One Quality Enhancements identified in Schedule D including the four false gables, nine chimney enclosures,'and gabled roof improvements. Then, the remaining $50,000 would be made available to-Westminster upon HUD approving the change order for the Category Two Quality Enhancements which 'include landscaping, irrigation, and air conditioners. The $82,000 can be recovered by the HRA over 3 1/2 years with collection beginning in the first half of 1996. The total tax increment which would be generated from the project equals $453,149 which equates to $252,437 in present value dollars. Recommendation Staff recommends the HRA approve the attached resolution authorizing the Executive Director and the Chairperson to execute the development contract. BD: 1S M -94 -122 1.3 Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis o Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 M E M O R A N D U M TO: City of Fridley Attention: Barbara Dacy, Community Development Director Westminister Attention: Douglas Mayo, Director of Housing Development FROM: James R. Casserly ) �C' DATE: March 7, 1994 RE: The Contract for Private Redevelopment By and Between The Fridley HRA.and Norwood Square, Inc. Attached each of you will find a Draft of the above Agreement. The only information I need to complete the Agreement is the legal description of the Redevelopment Property. If possible, please fax the description to me and we will incorporate it in the next Draft of the Agreement. The assistance for the Quality Enhancements is in the amount of $82,000. As indicated in Section 3.4, $32,000 of the assistance will be provided when the first draw takes place on the HUD funds. The balance of the assistance will be paid when HUD approves a change order for the Quality Enhancements described as Category II on Schedule D. To assist the Redeveloper with the Quality Enhancements, we are using the structure of a land write- down. The Agreement, in Article VI, contains a Tax Deficiency Guarantee to protect the Authority in the event that the market value of the property is less than the $1,568,000 that has been agreed upon, or in the event the Legislature reduces the class rate, currently 2.3, for this class of property. This Guarantee will last for five years following the year in which the Certificate of Completion is issued. The Authority should have recovered its investment in the Redevelopment Property within this period of time. 1.4 Barbara Dacy Douglas May March 7, 1994 page two If there questioha,'comments or suggestions please give me a call. JRC /ch Attachment cc: William Burns (w /no attachment) P.S. Barb, also enclosed you will find a Resolution authorizing the execution and delivery of the Contract for Redevelopment. 1.5 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY FRIDLEY AND NORWOOD SQUARE, INC. BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. it has been proposed that the Authority enter into a Contract For Private Redevelopment (the "Contract ") with NORWOOD SQUARE, INC. (the "Redeveloper "). Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program ")pursuant to Minnesota Statutes, Section 469.001 et sea. 2.02. The Authority hereby finds that the Contract promotes the objectives as outlined in its Redevelopment Program. Section 3. Authorization for Execution and Delivery. 3.01. The Chairman and the Executive Director of the Authority are hereby authorized to execute and deliver the Contract when the following condition is met: Substantial conformance of a Contract to the Contract presented to the Authority as of this date. Adopted by the Board of Commissioners of the Authority this day of , 1994. ATTEST: Executive Director Chairman r- i I a W+ 1.6 IEI IM EZI E - 5th STREET N.E. -, vt an arQd ' O �1 X ►EV ITALL,S . c I I I u MOON PLAZA LEGEND ® - -� •van Lac aac .m a.r� YS *rrc uort a a..ai aQ .ml ay+C YS nR UOIr O. lT RI n,c 1 l� I 1 � u MOON PLAZA LEGEND ® - -� •van Lac aac .m a.r� YS *rrc uort a a..ai aQ .ml ay+C YS nR UOIr O. lT RI n,c NORTH QET4fi mrtO�Y1 UGr O..441Gi I L�•y _ Y f l.� e N ti f*1 r r1 D —1 O Z f�l D N t*] !"t D O Z f 1.7 B e 1.8 co DA rL Y 0 at • _;. - <�t', ,�! -•: :�.- '.. mss. - • .. ..: .. - -. .1 �, a ':• �.. ? ?.: �a :: 'i[ 01 . - : _ _ :: - %: j : �' - • N '3L'r �y - � 1 T p• ; � ' _. 30! vLJi t � �" - �•- i7st 7EFIC 57 S4 C; Po.l 0-r-ro PAt t�lT� '., W PLAN:- 1.9 Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 MEMORANDUM TO: City of Fridley Attention: Barbara Dacy FROM: Mary Molzahn James Casserly RE: Proposed Norwood Square Apartments /Westminister Senior Housing DATE: September 30, 1993 Enclosed please find two preliminary cash flow analyses for the Norwood Square Apartments /Westminister Senior Housing proposal. Both analyses assume that construction of a 51 unit Title II housing project will be commenced and completed in 1994, with the project assessed in 1995 and taxes payable in 1996. The units will be valued at approximately $30,745 per unit, for a total estimated market value of approximately $1,568,000. Assuming the Title II tax class, the tax capacity upon completion will approximate $36,064. Total taxes to be generated are estimated at $41,329, assuming a 1.14599 pay 1993 tax rate, or $810 per unit. The tax increment generated, assuming 0.0% inflation, is approximately $32,545 annually. Administrative expenses, based on 10.0% on the tax increment generated, are reserved for the City. The first analysis assumes a 16 year term, through 6/2009 which is the termination date of the TIF District. The amount of available tax increment generated is approximately $453,149, with a present value of $252,437 at 7.5 %. The second analysis assumes a 5 -1/2 year term, sufficient only to generate the amount of TIF Assistance requested. The amount of tax increment generated that would be available for the project is approximately $104,419, with a present value of $82,000 at 7.5 %. Please call if you have any questions or comments. 8 � 1.10 CITY OF FRIDLEY. MINNESOTA PROPOSED WESTMINISTER SENIOR HOUSING WEST1 PREPARED BY CASSERLY MDLZAHN & ASSOCIATES 29- Sep-93 ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: AVAILABLE PRESENT VALUE ANALYSIS TAX TAX TAX TAX ADMIN TAX SEMI ANNUAL CUMULATIVE DATE CAPACITY CAPACITY CAPACITY INCREMENT EXPENSES INCREMENT BALANCE BALANCE 12 / 1993 3,519 3,519 0 0 0 0 0 0 6/ 1994 .3, 519 3,519 0 0 0 0 0 0 12 / 1994 3,519 3,519 0 0 0l 0 0 0' 6/ 1995 3,519 36,064 0 0 0 0 0 0 12 / 1995 3,519 36,064 0 0 0 0 0 0 6 / 1996 3,519 36,064 32,545 18,648 1,865 16,783 14,485 14,485 12 / 1996 3,519 36,064 32,545 18,648 1,865 16,783 13,962 28,447 6 / 1997 3,519 36,064 32,545 18,648 1,865 16,783 13,457 41,904 12 / 1997 3,519 36,064 32,545 18,648 1,865 16,783 12,971 54,875 6 / 1998 3,519 36,064 32,545 18,648 1,865 16,783 12,502 67,376 12 / 1998 3,519 36,064 32,545 18,648 1,865 16,783 12,050 79,426 6 / 1999 3,519 36,064 32,545 18,648 1,865 16,783 11,614 91,041 12 / 1999 3,519 36,064 32,545 18,648 1,865 16,783 11,195 102,235 6 / 2000 3,519 36,064 32,545 18,648 1,865 16,783 10,790 113,025 12 / 2000 3,519 36,064 32,545 18,648 1,865 16,783 10,400 123,425 6 / 2001 3,519 36,064 32,545 18,648 1,865 16,783 10,024 133,449 12 / 2001 3,519 36,064 32,545 18,648 1,865 16,783 9,662 143,111 6 / 2002 3,519 36,064 .32,545 18,648 1,865 16,783 9,313 152,424 12 / 2002 3,519 36,064 32,545 18,1648 1,865 16,783 8,976 161,400 6 / 2003 3,519 36,064 32,545 18,648 1,865 16,783 8,652 170,051 12 / 2003 3,519 36,064 32,545 18,648 1,865 16,783 8,339 178,390 6 / 2004 3,519 36,064 32,545 18,648 1,865 16,783 8,037 186,427 12 / 2004 3,519 36,064 32,545 18,648 1,865 16,783 7,747 194,174 6 / 2005 3,519 36,064 32,545 18,648 1,865 16,783 7,467 201,641 12 / 2005 3,519 36,064 32,545 18,648 1,865 16,783 7,197 208,838 6 / 2006 3,519 36,064 32,545 18,648 1,865 16,783 6,937 215,775 12 / 2006 3,519 36,064 32,545 18,648 1,865 16,783 6,686 222,461 6 / 2007 3,519 36,064 32,545 18,648 1,865 16,783 6,444 228,905 12 / 2007 3,519 36,064 32,545 18,648 1,865 16,783 6,212 235,117 6 / 2008 3,519 36,064 32,545 18,648 1,865 16,783 5,987 241,104 12 / 2008 3,519 36,064 32,545 18,648 1,865 16,783 5,771 246,875 6 / 2009 3,519 36,064 32,545 18,648 1,865 16,783 5,562 252,437 aaaaaaaaaaaaaaaaaaaa= aaa= acaaaaaaaaa= aaaoaaaaaaaa�aaaaaaa= 503,499 50,350 aaaaaaaaaaaaaaaaaaa 453,149 -- = 252,437 aaaaaaaaaaaaaaaaaaaaaaaaaa 252,437 WEST1 PREPARED BY CASSERLY MDLZAHN & ASSOCIATES 29- Sep-93 u CITY OF FRIDLEY, MINNESOTA PROPOSED WESTMINISTER SENIOR ROUSING 1.11 WEST1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 30- Sep-93 ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: AVAILABLE PV OF AVAILABLE TO PROJECT TAX TAX TAX TAX ADMIN TAX AVAILABLE AVAILABLE SEMI ANNUAL CUMULATIVE DATE CAPACITY CAPACITY CAPACITY INCREMENT EXPENSES INCREMENT TO PROJECT TO CITY BALANCE BALANCE 12 /•1993 3,519 3,519 0 0 0. 0 0 0 0 0 6/ 1994 -3.519 3,519 0 0 0 0 0 0 0 0 12 / 1994 3, 51.9 3,519 0 0 0 0 0 0 0 0 6/ 1995 3,519 36,064 0 0 0 0 0 0 0 0 12 / 1995 3,519 36,064 0 0 0 0 0 0 0 0 6 / 1996 3,519 36,064 32,545 18,648 1,865 16,783 16,783 0 14,485 14,485 12 / 1996 3,519 36,064 32,545 18,648 1,865 16,783 16,783 0 13,962 28,447 6 / 1997 3,519 36,064 32,545 18,648 1,865 16,783 16,783 0 13,457 41,904 12 / 1997 3,519 36,064 32,545 18,648 1,865 16,783 16,783 0 12,971 54,875 6 / 1998 3,519 36,064 32,545 18,648 1,865 16,783 16,783 0 12,502 67,376 12 / 1998 3,519 36,064 32,545 18,648 1,865 16,783 16,783 •0 12,050 79,426 6 / 1999 3,519 36,064 32,545 18,648 1,865 16,783 3,719 13,064 2,574 82,000 130,537 13,054 117,483 104,419 13,064 82,000 82,000 WEST1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 30- Sep-93 1.12 CITY OF FRIDLEY, MINNESOTA PAY 1993 MARKET VALUE 153,000 PAY 1993 TAX CAPACITY (TITLE II) 2.30% 3,519 TOTAL ESTIMATED MARKET VALUE 1,568,000 LAND 153,000 # UNITS 51 VALUE /UNIT 3,000 BUILDING .1,415,000 TOTAL ESTIMATED TAX CAPACITY (TITLE II) 36,064 LAND 2.30% 3,519 BUILDING 2.30% 32.545 CONSTRUCTION 1994 VALUATION 1995 TAXES PAYABLE 1996 PAY 1993 TAX RATE 1.14599 INFLATION 0.00% ADMIN EXPENSES 10.00% PV RATE 6/1994 7.50% WEST1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 29 -Sep-93 d 2.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY . -City of Fridley DATE: 'March 10, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Award Bid for Lake Pointe Maintenance Project Bids were taken on February 17, 1994, for the Lake Pointe development maintenance project. Low bidder was Innovative Irrigation with a bid of $20,999. As you recall, the contract for 1993 was awarded to Jon Isaacson Lawn Care for $24,173. Jon Isaacson Lawn Care did bid on this project, but Innovative Irrigation was lower. Innovative Irrigation was the contractor for the maintenance project in 1992. The bid price.is. well within the 1994 HRA budget since the budget amount was based upon the 1993 contract amount. Recommendation Staff recommends that the HRA award the bid and authorize execution of the contract with Innovative Irrigation for a total amount of $20,999. BD:ls M -94 -116 Engineering Sewer Waler Parks Slreels Main;ena,CC MEMORANDUM TO: Barbara Dacy, Community Development Director PW94 -052 �Y FROM: Jon Thompson, Construction Inspector DATE: February 17, 1994 SUBJECT: Lake Pointe Development Maintenance Project No. 265 Bids were received on Thursday, February 17, 1994, at 11:00 am for Lake Pointe Development Maintenance Project No. 265. The low bidder was Innovative Irrigation with a bid of $20,999, Attached is a summary sheet showing the. planholders and bid amounts. Please have the HRA approve the contract award to Innovative Irrigation for $20,999 at the March 3, 1994 HRA meeting. JT.cz Attachment BID FOR PROPOSALS LAKE POINTE DEVELOPMENT MAINTENANCE, PROJECT NO. 265 THURSDAY, FEBRUARY 17, 1994, 11:00 A.M. 2.3 Innovative Irrigation 50A United Fire & $20,999 10006 University Ave NW Casualty Coon Rapids,-MN 55448 Arteka- Natural Green 5% Warsaw Ins. $22,450 15195 Martin Dr Eden Prairie, MN 55344 Star Lawn Cashiers Check $22,950 8435 Laddie Rd $1,150 Spring Lake Park MN 55432 Jon Isaacson Lawn Care 51% Amwest Surety $23,992 105515 County Rd 116 (19910 Dassel Lane) Rogers, MN 55374 Prescription Landscape Cashiers Check $40,817.07 1311 Sylvan St $2,050 St Paul MN 55117 Anoka Lawn & Garden No Bid Box 632 Anoka MN 55303 Bonine Excavating No Bid 12669 Meadowvale Rd Elk River MN 55330 Contract Maintenance Service No Bid 13000 Harper St Blaine MN 55449 Fair's Garden Center No Bid 201 E Broadway Monticello MN 55362 Mirage 7955 Riverdale Dr Ramsey MN 55330 Nadeau Utllities 6615 Highway #12 Independence MN 55359 No Bid No Bid r_ 9 r � s DATE: TO: FROM: SUBJECT: 3.1 Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley March 10; 1994 William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Agreement for Legal Services with Casserly Molzahn & Associates, Inc. Jim Casserly has submitted the attached contract for services for a two year period from January 1, 1994, through December 31, 1995. The suggested compensation rate is proposed to increase to $95 per hour starting March 1, 1994, and $100 per hour in 1995. Currently, the HRA is paying $90 per hour; a rate which has not been changed for the last six years. In 1993, about $40,000 was budgeted for Casserly's expenses. Approximately $20,000 was expended. The proposed contract would not adversely affect the amount budgeted for 1994. Recommendation Staff recommends that the HRA approve the enclosed contract with Casserly Molzahn & Associates, Inc. BD:ls M -94 -117 a 's 3.A Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 M- E M O R A N D U M TO: City of Fridley William Burns, City Manager Barbara Dacy, Director of Community Development FROM: James R. Casserly f C12 DATE: February-17, 94 •17 1 Y/ y RE: Agreement For Legal Services Enclosed you will find an Agreement For Legal Services that is identical to the previous Agreement except as follows: 1:. The term is from January 1st of 1994 through December 31, 1995. 2. Included under "Duties and Responsibilities" in Paragraph F is a reference to assisting with development of housing programs and preparation of appropriate documents. Since we have been working on housing programs for the Authority for the last two years, it seems only reasonable to include it in the "Duties and Responsibilities." 3. The suggestion is to increase compensation to $95.00 per hour starting March 1, 1994 and $100.00 per hour for 1995. The $90.00 per hour rate has not been changed for the last six years. As it is, we offer a specialized service and are able to keep our rates low because of our low overhead. Our other cities, many of which are smaller, are currently paying $95.00 or $100.00 per hour while our private sector clients pay $125.00 to $150.00 per hour. I did not want to be so presumptuous as to send you signed copies of this Agreement until we had some further discussion regarding the request for increased compensation. I will talk to you soon. JRC /ch Enclosure 1. 2. Vii' AGREEMENT FOR LEGAL SERVICES BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY HRA AND CASSERLY LAW OFFICE, P.A. Term of the'Amreement: January 1, 1994 through December 31, 1995. Duties and Responsibilities of Casserly Law Office, P.A.: A. Analyze subsidies requested by developers or offered by the City, including: i. Tax increment analysis; ii. Internal rate of return analysis; and iii. Pro forma cash flow and balance sheet analysis. B. Assist with any tax increment work, including the following: i. Modify the redevelopment.project area; ii. Establish the tax increment district and the tax increment finance plan, including impact analyses; iii. Prepare resolutions adopting the above; iv. Prepare notice of public hearings; v. Attend public hearings to provide support and background; vi. Prepare letters and notices for the School and County Boards; and vii. Prepare letters requesting certifications and filing documents with the appropriate jurisdictions. C. Assist in the negotiation and preparation of contracts for private development, assessment agreements, special assessment agreements, interest rate reduction programs, revenue notes, and other contractual arrangements between the Fridley HRA and the developer. D. Assist with any debt issuance, including recommendations as to size, maturity, form and sale of debt as they relate to the project analysis. 3� E. Assist with policy analysis and with the review and updating of tax increment districts. F. Assist with the development of housing programs and prepare the appropriate documents and resolutions. 3. Compensation': A. Compensation shall be at the hourly rate of Ninety Dollars ($90.00) through February 28, 1994; Ninety -five Dollars ($95.00) from March 1, 1994 through December 31, 1994; and One Hundred Dollars ($100.00) from January 1, 1995 through December 31, 1995. B. Casserly Law Office, P.A., shall submit an itemized statement that clearly accounts for the hours of service provided by Casserly Law Office, P.A. 5. Other Reimbursements: A. Casserly Law Office, P.A., shall be reimbursed for long distance calls and delivery services, as well as for any filing fees that it incurs on behalf of the Fridley HRA. All other expenses will be included as part of the per hour compensation rate. Agreed and entered into this day of January, 1994. CASSERLY LAW OFFICE, P.A. By FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY By By r � occu�saoci<�occi�u „•,cccrr i Z I 0, OMOQ'M0 .00OOC-4as- rO0,O .. i o I aO<Oi`tOvioia�Q {! 1110 C,nr- 67 �i a 1S m i f ; i ; i i o i }- j H W Cr_ 1 i31 � a1 c c; P MI H i ij O i 0Ld K tt 1.2 E '0. 0:3 h') ; N O r u rJ i I U s L L � i z. U: L i 0 i t 3 U. > i X37 n Z Q c a �jz OOH . Jt MME Eo WEY C! C U ”. LLs _a L! 0 1 1CLiL z O' a z W Yw we UA N W E3 ED H W X A > M H Z < ~4x 3 ww J X J E- i- x W -1 0c z � J �� cz °N LC W z Zal- cc 0 J}' H1t,3,1,}19H -1HW t,N1H aHzzz� <W::, i st O m } ii°z i�aHDQ�UI ZEV4 H WF- H.JJFHzwa CCF - N¢}L CLMXOOUMO G } -J UCL'4t1 - Wi -diem nHW<i-it3w L3 4xzo¢><@c6oEoNwwHaowwj 1" H U CL CL A U M j i> c J l m c CL L W CJMIt h7<Qi- NQ•C•JM` t If) - Ol,mPO V M 000000000000ooa0000 r- INNcaJv�J�4elN �JC4NIN acicaMNNN c z N f- U ° C z L > r r w 0 F E Z Ld W v GOH w F Z H W U N�:L'zYZZ YUHYZ ware >E cHwcm Ld0)U)L nmwmw W M LM Ni!O z CC CZ 0L } O J -j W W ? W WHW H WF- we cZz }z >•- F}-Lt- rH31 -z W HI - F- C wcwcow cCCcco C! TO: FRIDLEY H.R.A FROM: CITY OF FRIDLEY RE: BILLING FOR ADMINISTRATIVE AND OPERATING EXPENSES FEBRUARY 1994 l4 Account #'s for HRA's Use 4.2 Account #'s for City's Use ADMINISTRATIVE BILLING: ADMINISTRATIVE PERSONAL SERVICES 14,255.00 101 - 0000 - 341 -1200 ADMINISTRATIVE OVERHEAD 275.00 101 -0000- 336 -3000 TOTAL ADMINISTRATIVE BILLING: 460- 0000 -430 -4107 14,530.00 OPERATING EXPENSES: U.S. WEST — TELEPHONE SERVICE 262- 0000 - 430 -4332 13.13 236- 0000 - 336 -3000 POSTAGE BY PHONE 460- 0000 - 430 -4332 92.09 236- 0000 - 336 -3000 U OF M — REGISTRATION' .262- 0000 - 430 -4332 30.00 236- 0000 - 336 -3000 FOCUS - AD FOR RICE PLAZA DEMO BID 450- 0000 - 430 -4334 87.45 236 -0000- 336 -3000 CITY OF FRIDLEY — FEB HEALTH INS 262 -0000- 219 -1003 175.90 , 236 -0000- 219 -1003 CITY OF FRIDLEY — FEB DENTAL INS 262 -0000- 219 -1100 20.53 236 - 0000 -219 -1100 CITY OF FRIDLEY — JAN $FEB LIFE INS 262 -0000- 219 -1200 8.50 236 -0000- 219 -1200 CITY OF FRIDLEY — GRANTS 93 HEALTH INS 262 -0000 -208 -0000 1,388.30 236 -0000- 131 -0000 CITY OF FRIDLEY — GRANTS 93 DENTAL INS 262 -0000- 208 -0000 184.77 236 -0000- 131 -0000 CITY OF FRIDLEY — GRANTS 93 LIFE INS 262 -0000- 208 -0000 8.50 236 -0000- 131 -0000 TOTAL OPERATING EXPENSES: 2,009 17 TOTAL EXPENDITURES — FEBRUARY 1994 File: \123DATA\HRA\TIF\BILLING.wk1 Details L9 LL i- 1 OO?OONDOD000 +f z 1 MOloh7Ol0000)OMO m U i C,OOOONl-.6 noo,0 � i 00,Ot�iO�� 0 6) 4�ttSM ! N t .rf W { r i z L W Qi i Q I W i r ? i c� r i !± .i r \ 1 A � { :-1 I L O i v U LOi, U 1 Ji wr: :J is s L{ L r� > i i 1 rj J O _ I ^ 1 Ld ul H z CL iiy r >> a U J U r x x z W N WW WL Y) > W iii O L3 r z >S ii iL 'r O W z Q J!OQfL U(Att3 Q U3 00 Wi- 0 -owJzi wwr.t WZtiCHC W r�� WccH -1z+ez r• zz• i- 3i=0LO c QW>->- <UXOLH H a �(rn »¢or"Nwccw QUiiiiftii'r13UL�L z >MmLuDlcwcjO H H L L Q.Zv-10 X 0. X P. 0100%0vlNmv0 0NM .0No43 r- NNNrNrr r O 0 0 0 0 0 0 0 0 0 0 0 N,r-IN N N 1.1 N NNNC4 04 H Q A (ArW H U,, J cOL0. z O �U) NE fi.z iG r w"cezo z0U. r L W 0- H H zYLUit�x EztW -rLL CcU ozo siMOLO AZ XH W ix 0iCL H-40 W X0 HW ti r0?-rZzwx rr 3W rUHi -U2 WQ>-Qr HQr Xz(.) iCrNJ t-UfGZ <[ H(1) L7D Wit f-•HCL0 s9>- HW —,ZCC Z-a 0ZAUit +W Q- 0ZA ce -j 1. O 7YW AZCP — ZH_iHUfl ._j L; i !u Z i•- J CL • %!t QUHQQQ�JH HL MurtzL wmur ol ol tT C• C- C• - C` C• O 0 -0 �0 '0 .0 `0 C i% •a 'o 'a r. ri e+ .� •� i H •r{ ri •i r3 � ;�; r ^: r ro i<� r•) r� r� ro r� ri ri O� N O W O K C7 O W of dwR dz c5 F- z 'z .-. p f- M 2 W �cc U U Q OC W H N_ C9 W W. LU F C7 Q °a � U r a_ W H U U) W W w J S W Ui U F- 1 w . O. m. CL 1 I I 1 I 1 1 WMW U) L+ =3 z J J J w~ LL W LLHHU -- (-O� OHH UIO WWQ d'O Y N N 1 �m I I LL S I ()UZQ. c I FFLLm p In GC LL 1 1 m It m 1- 1 IdIZ 1 tw.fg�g i 19 o OO�I�C, SM0 OC %j Din ��MO o�O�O��M%0Go O PO a S \� NN N? ON goo: oOOO000Op000000 m U 1 rw z W 7 m U � U 2 Q 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O N N O O N ,t I. 'O N N .t .t N O OO�O 10 O M1O M M — r M 0 0 0 0 0 0 0 0 0oo o o o °O O 0 o° O O O M M O O M OOOO r-NO O -O 10 �O NO O %O -O P.N NNNi1NN H 1 z 1 I w I E 1 d I O I �T W 't 't 't 't 't V' 1 W 1 Ol 0 Q O\ Ol Ol W I I \ \ \ \ \ \ \ \ W 1 Q I N N N N N N N N •p CK 1 p 1 \ \ \ \ \ \ \\ I N N N N N N N N p 1 1 z 1 C%j O n LU O N M I W z w I \� I U I O N M'Y'In NM3 I W Ol �T �T �t 0t 0t 0t 0t E I OC OAP PO. O%O•G 01 (7 S I 1 C3 1 I W Y I Q J 1 I W O O I I aa�� NC W Q ciao U p F xxx U U U F F H Q Q Q ED m m p W y N W U O d 2 O U y z H 1' U O 4.3 e .. J r � 5.1 � :T1 Ca Community Development Department PLANNING DIVISION City of Fridley DATE: March 8, 1994 TO: ✓William Burns, Executive.Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Update on Scattered Site Housing Program The following is the status report on our efforts to acquire blighted properties in the scattered site housing program. 560 Hugo-Street our original offer was rejected by the owner; however, we are continuing to negotiate with the owner. We will provide you with an update when available. 513 Fairmont Street Staff is working with the City Attorney, Gregg Herrick, to pursue demolition of this structure and have the costs assessed against the property. This property is currently in foreclosure and will eventually go back to HUD. Mr. Herrick recommended that we try and work with the owner and gain voluntary cooperation to tear down the building; however, this may_ be difficult. Based on our conversations with Mr. Herrick, the courts tend to favor the landowner in this type of case. The reason is that ordering the removal of a hazardous structure amounts to taking the property without compensation. As a first step, we will need to inspect the property and determine its condition and all code violations. Next, the owner is given a reasonable period of time to correct the violations. If the owner fails to respond to the compliance order, the City can request a court order to proceed with demolition. We will continue to work with the City Attorney regarding this property. 187 Longfellow Street This property was appraised, and staff is prepared to discuss the results at the March 17, 1994, HRA meeting. .M -% 5.2 Update on Scattered Site Housing Program March 8, 1994 Page 2 280 East River Road Staff also had thi-s.property appraised and will review the matter with the HRA. The owners of 100 Charles Street and 1632 Rice Creek Road did not .respond to our letters and, as such, have been dropped from the list. We will continue to work down the property list and will keep you informed of our efforts. GF:ls M -94 -100 r � 5.3 Community Development Department PLANNING DIVISION City of Fridley DATE: February 17, 1994 TO: William Burns, City Manager FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: Update on Scattered -Site Acquisition Program As you know, the HRA approved this program with the intent of acquiring and clearing severely deteriorated properties which are considered blighting influences upon City neighborhoods. This year, the HRA budgeted $200,000 for the program in hopes of buying four to six homes. Once the sites are acquired, the homes would be demolished and the vacant lots sold for construction of new - homes. Staff identified more than 50 homes through a "windshield" survey conducted in the summer of 1992. Initially, the homes were identified as potential candidates for our housing rehabilitation programs; however, we decided to use the list as a basis for the scattered -site acquisition program, as well. From this list, five properties were selected for acquisition. The properties which were determined to be the most severely deteriorated are listed below: 560 Hugo Street ( *) 100 Charles Street 8280 East River Road ( *) 1632 Rice Creek Road 513 Fairmont Street In early February, a letter was sent to each property owner which stated the HRA's interest to enter into negotiations. Since the letter was sent, two owners have agreed to negotiate with the HRA ( *). The remaining owners have until February 24, 1994 to respond. It should also be noted that staff is currently working with the Assistant City Attorney to research condemnation procedures for 513 Fairmont Street. It may be possible to order the removal of the structure under the State Hazardous Building Statutes (M.S. 463.15 - 463.261). S 5.4 Update on Scattered -Site Acquisition Program February 17, 1994 Page 2 In addition to the HRA properties, the City also has three sites which could be included in the program inventory. The properties are located at: Broad-Avenue and Lafayette Street 5720 Polk Street Booster Station lot In terms of selling the properties, there are a number of options, including: 1. Develop a Request for Proposal to local builders and sell the.properties as part of a package deal. 2. List the properties with a real estate agent and sell them on an individual basis. 3. Land bank. 4. Convey to a non - profit. Each method has some merit; however,, to recoup our funds more quickly, we feel selling the lots through an RFP process would be most advantageous. If, however, we receive no response, we would recommend listing the properties with a real estate agent. Unless otherwise directed, we will proceed with disposal of the lots via Method #1. GF /dn M -94 -78 FODLFY- M(INICIPAI. CEN "ITR -h -131 UNIVI:RSI -IN _ VI:. N --z FRII)I._I:Y, \1N ii-1 461 �,,?,-.1-150 . FAX I�,I �� ?I -i,S7 February 11, 1994 S�MPl.iE • Mr. Edward Smoluch 100 Charles Street Fridley, MN 55432 Dear Mr. Smoluch: The Fridley Housing and Redevelopment Authority has embarked on a new campaign to improve the City's neighborhoods through a combination of housing rehabilitation and acquisition and clearance of older homes. This year we expect to acquire approximately six properties in the city for this purpose. Your home has been identified as one of about twenty potential sites for acquisition. If you are interested in selling to us, we can begin negotiations immediately. If you are not interested we will negotiate with other owners on our list. Please note this program is totally voluntary. If, however, you want to take advantage of the opportunity to sell, we would be interested in talking with you. Please indicate your interest by completing the enclosed form. If we do not hear from you by February 24, 1994 we will assume you are not interested. If you have. questions, please call Grant Fernelius, City Housing Coordinator at 572 -3591. Sincerely, "PL- e tlil -•liam Fd_ Burns City Manager BncIosure U 6.1 ' Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley nn mta . . — _L TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator SUBJECT: 1994 HOME Program Application Anoka. County has notified us of the opportunity to apply for funds under the 1994 HOME * Investment- Partnership Act (HOME Program) . These funds which are provided by HUD must be used for acquisition, rehabilitation, or construction of permanent or transitional owner - occupied or rental housing that serves low income households. All households served must have incomes at or below 60% of the area median ($29,775 for a family of four) . The City must also provide a 25% match. In 1993, we received $70,000 in HOME funds and provided a local match of $17,500. The funds were used for our housing rehabilitation program. For 1994, we would propose to fund the same activity and request the same amount ($70,000 HOME, $17,500 local match). GF:ls M -94 -119 T.1 Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE:* March- 10, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Consider TIF Request from Scott Lund Scott Lund, owner of Rite -Way Mobile Home Repair is proposing to construct a 13,000 square foot office /warehouse facility on the north side of 73 1/2 Avenue just east of Highway 65 (see location map). Lund is requesting TIF assistance up to 5% of the total project costs or approximately $17,000. The parcel is located in TIF District No. 9 (Onan). Lund is currently processing plat and rezoning requests for the parcel. At its March 9, 1994, meeting, the Planning Commission recommended approval of both of these requests. Casserly has prepared a preliminary tax increment analysis (attached) indicating that the pay -as- you -go payments would continue until the year 2000. The Onan district expires in the year 2014. The proposed project will generate available tax increment of $89,837 or $42,516 in present value dollars. Lund has applied for SBA 504 financing for the project (see enclosed SBA application). He indicates that the cost of the project is still being finalized, and that he is in the process of receiving bids. The amount of HRA assistance may increase slightly. Recommendation Staff recommends that the HRA authorize staff to negotiate a development contract with Lund for the proposed project. The proposed request is well within the HRA TIF policies. Further, assisting this project will help the HRA to continue. to obtain tax increment reimbursements from Anoka County. Request for Information on Auto Mall Proposal: The HRA requested background information on the TIF request for the Auto Mall proposal which includes the subject property. At that time, pay -as- you -go assistance was requested in the range of $85,000 to $136,000. The Auto Mall project had an estimated market value of $1,700,000. On August 16, 1990, the developer withdrew the request for tax increment financing (see July 1990 minutes).. M -94 -118 Casserly Molzahn & Associates, Inc. 215 South 11th Street, Suite 300 • Minneapolis • Minnesota 55403 Office (612) 342 -2277 • Fax (612) 334 -3382 M E M O R A N D U M TO: City of Fridley Attention: William Burns !.Barbara Dacy FROM: Mary E. Molzahn James R. Casserly RE: Proposed Scott Lund Project DATE: February 22, 1994 7.2 Enclosed please find two cash flow analyses regarding the proposed Scott Lund Project. The proposed development is the construction of a 13,000 square foot office /warehouse facility to be completed in 1994 on four vacant parcels located in TIF District No. 9 (Onan). The developer is requesting 5% of'its total costs, or approximately $17,000 in TIF assistance. Both analyses are formatted for the duration of the TIF District which terminates in the year 2014, and both are based on identical assumptions which are listed on the second page of each analysis. Exhibit A shows the total amount of tax increment generated ($99,818), 10% in administrative fees ($9,982), the total amount of available tax increment ($89,837), and the present value of the available increment ($42,516). Exhibit B reflects the amount of TIF assistance available to the developer and the amount of tax increment available to the HRA for its development activities. The requested TIF assistance of $17,000 can be provided over five tax increment years and would terminate in the year 2000. Assuming an interest rate of 7.5 %, the developer would receive a total of $23,018 in principal and interest. The $17,000 represents the principal of a revenue note used in the pay -as- you -go type financing, and the difference of $6,018 represents interest. The remaining tax increment listed under "Available for "HRA" is available for public improvements which are documented in the HRA's Redevelopment Plan. EXHIBIT A CITY OF FRIDLEY, MINNESOTA PROPOSED SCOTT LUND PROJECT ORIGINAL ESTIMATED CAPTURED ESTIMATED LESS: AVAILABLE TAX TAX TAX TAX ADMIN TAX DATE. CAPACITY CAPACITY CAPACITY INCREMENT FEES INCREMENT 6/ 1994 7,068 7,068 0 0 0 0 12 /•1994 7,068 7,068 0 0 0 0 6/ 1995 7,068 11,584 0 0 0 0 12 / 1995 7,068 11,584 0 0 0 0 6 / 1996 7,068 11,584 4,516 2,627 263 2,364 12 / 1996 7,068 11,584 4,516 2,627 263 2,364 6 / 1997 7,068 11,584 4,516 2,627 263 2,364 12 / 1997 7,068 11,584 4,516 2,627 263 2,364 6 / 1998 7,068 11,584 4,516 2,627 263 2,364 12 / 1998 7,068 11,584 4,516 2,627 263 2,364 6 / 1999 7,068 11,584 4,516 2,627 263 2,364 12 / 1999 7,068 11,584 4,516 2,627 263 2,364 6 / 2000 7,068 11,584 4,516 2,627 263 2,364 12 / 2000 7,068 11,584 4,516 2,627 263 2,364 6 / 2001 7,068 11,584 4,516 2,627 263 2,364 12 / 2001 7,068 11,584 4,516 2,627 263 2,364 6 / 2002 7,068 11,584 4,516 2,627 263 2,364 12 / 2002 7,068 11,584 4,516 2,627 263 2,364 6 / 2003 7,068 11,584 4,516 2,627 263 2,364- 12 / 2003 7,068 11,584 4,516 2,627 263 2,364 6 / 2004 7,068 11,584 4,516 2,627 263 2,364 12 / 2004 7,068 11,584 4,516 2,627 263 2,364 6 / 2005 7,068 11,584 4,516 2,627 263 2,364 12 / 2005 7,068 11,584 4,516 2,627 263 2,364 6 / 2006 7,068 11,584 4,516 2,627 263 2,364 12 / 2006 7,068 11,584 4,516 2,627 263 2,364 6 / 2007 7,068 11,584 4,516 2,627 263 2,364 12 / 2007 7,068 11,584 4,516 2,627 263 2,364 6 / 2008 7,068 11,584 4,516 2,627 263 2,364 12 / 2008 7,068 11,584 4,516 2,627 263 2,364 6 / 2009 7,068 11,584 4,516 2,627 263 2,364 12 / 2009 7,068 11,584 4,516 2,627 263 2,364 6 / 2010 7,068 11,584 4,516 2,627 263 2,364 12 / 2010 7,068 11,584 4,516 2,627 263 2,364 6 / 2011 7,068 11,584 4,516 2,627 263 2,364 12 / 2011 7,068 11,584 4,516 2,627 263 2,364 6 / 2012 7,068 11,584 4,516 2,627 263 2,364 12 / 2012 7,068 11,584 4,516 2,627 263 2.364 6 / 2013 7,068 11.584 4,516 2,627 263 2,364 12 / 2013 7,068 11,584 4,516 2,627 263 2.364 6 / 2014 7,068 11.584 4.516 2,627 263 2,364 12 / 2014 7,066 11,584 4,516 2,627 263 2,364 99,818 9,982 89,837 - aaaaa_aaaaanaaacaaaaaaa 7.50% PV RATE PRESENT VALUE ANALYSIS SEMI ANNUAL CUMULATIVE BALANCE BALANCE 0 0 0 0 0 0 0 0 2,040 2,040 1.967 4,007 1,896 5,903 1,827 7,730 1,761 9,491 1,697 11,188 1,636 12,824 1,577 14,401 1,520 15,921 1,465 17,386 1,412 18,798 1,361 20,159 1,312 21,471 1,264 22,735 1,219 23,954 1,175 25,128 1,132 26,260 1,091 27,352 1,052 28,403 1,014 29,417 977 30,394 942 31,336 908 32,244 875 33,119 843 33,962 813 34,775 783 35,559 755 36,314 728 37,042 702 37,743 676 38,419 652 39,071 628 39,699 605 40,305 584 40,888 563 41,451 542 41,993 523 42,516 42,516 42,516 W LUND1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 17- Feb-94 7.4 CITY OF FRIDLEY, MINNESOTA ORIGINAL MARKET VALUE 139,700 12- 30 -24 -24 -0011 12,300 12 -30 -24-24 -0012 6,200 12- 30 -24 -24 -0013 9,100 12- 30 -24 -24 -0044 112,100 ORIGINAL TAX CAPACITY 7,068 12- 30 -24 -24 -0011 522 12- 30 -24 -24 -0012 314 12- 30- 24- 24-0013 460 12 -30 -24-24 -0044 5,672 ESTIMATED CONSTRUCTION COSTS 80.00% 230,000 ESTIMATED MARKET VALUE - BLDG 164,000 ESTIMATED MARKET VALUE - LAND 102,600 12 -30 -24-24 -0011 12,300 12 -30 -24-24 -0012 6,200 12- 30 -24 -24 -0013 9,100 12 -30 -24-24 -0044 75,000 ESTIMATED MARKET VALUE - PROJECT 286,600 ESTIMATED TAX CAPACITY 3.00% 4.60% 11,584 CONSTRUCTION 1994 VALUATION 1995 TAXES PAYABLE 1996 ESTIMATED 1994 TAX RATE 1.163434 ESTIMATED TAXES 13,477 ESTIMATED TAXES /SQUARE FOOT 13,000 SF 1.04 ADMIN FEES 10.00% INFLATION 0.00% PV RATE 7,50% REQUESTED TIF ASSISTANCE - 5.0% OF 340,000 (TOTAL COSTS) 17,000 LUND1 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 17- Feb-94 PROPOSED SCOTT LUND PROJECT ORIGINAL ESTIMATED TAX TAX DATE CAPACITY CAPACITY EXHIBIT B 7.5 CITY OF FRIDLEY, MINNESOTA CAPTURED ESTIMATED LESS: AVAILABLE TAX TAX ADMIN FOR CAPACITY INCREMENT FEES HRA 6/ 1994 71068 7,068 0 0 0 0 12 / 1994 7,068 7,068 0 0 0. 0 6/ 1995' 7,068 11,584 0 0 0 0 12 / 1995 7,068 11,584 0 0 0 0 6 / 1996 7,068 11,584 4,516 2,627 263 (0) 12 / 1996 7,068 11,584 4,516 2,627 263 (0) 6 / 1997 7,068 11,584 4,516 2,627 263 (0) 12 / 1997 7,068 11,584 4,516 2,627 263 (0) 6 / 1998 7,068 11,584 4,516 2,627 263 (0) 12 / 1998 7,068 11,584 4,516 2,627 263 (0) 6 / 1999 7,068 11,584 4,516 2,627 263 (0) 12 / 1999 7,068 11,584 4,516 2,627 263 (0) 6 / 2000 7,068 11,584 4,516 2,627 263 (0) 12 / 2000 7,068 11,584 4,516 2,627 263 623 6 / 2001 7,068 11,584 4,516 2,627 263 2,364 12 / 2001 7,068 11,584 4,516 2,627 263 2,364 6 / 2002 7,068 11,584 4,516 2,627 263 2,364 12 / 2002 7,068 11,584 4,516 2,627 263 2,364 6 /.2003 7,068 11,564 4;516 2,627 263 2,364 12 / 2003 7,068 11,584 4,516 2,627 263 2;364 6 / 2004 7,068 11,584 4,516 2,627 263 2,364 12 / 2004 7,068 11,584 4,516 2,627 263 2,364 6 / 2005 7,068 11,584 4,516 2,627 263 2,364 12 / 2005 7,068 11,584 4,516 2,627 263 2,364 6 / 2006 7,068 11,584 4,516 21627 263 2,364 12 / 2006 7,068 11,584 4,516 2,627 263 2,364 6 / 2007 7,068 11,584 4,516 2,627 263 2,364 12 / 2007 7,068 11,584 4,516 2,627 263 2,364 6 / 2008 7,068 11,584 4,516 2,627 263 2,364 12 / 2008 7,068 11,584 4,516 2,627 263 2,364 6 / 2009 7,068 11,584 4,516 2,627 263 2,364 12 / 2009 7,068 11,584 4,516 2,627 263 2,364 6 / 2010 7,068 11,584 4,516 2,627 263 2,364 12 / 2010 7,068 11,584 4,516 2,627 263 2,364 6 / 2011 7,068 11,584 4,516 2,627 263 2,364 12 / 2011 7,068 11,584 4,516 2,627 263 2,364 6 / 2012 7,068 11,584 4,516 2,627 263 2,364 12 / 2012 7,068 11,584 4,516 2,627 263 2,364 6 / 2013 7,068 11,584 4,516 2,627 263 2,364 12 / 2013 7,068 11,584 4,516 2,627 263 2,364 6 / 2014 7,068 11,584 4,516 2,627 263 2,364 12 / 2014 7,068 11,584 4,516 2,627 263, 2,364 AVAILABLE FOR DEVELOPER 0 0 0 0 2,364 2,364 2,364 2,364 2,364 2,364 2,364 2,364 2,364 1,741 99,818 9,982 66,819 23,018 7.50X PV RATE PRESENT VALUE ANALYSIS SEMI ANNUAL CUMULATIVE 0 0 0 0. 0 0 0 0 2,040 2,040 1,967 4,007 1,896 5,903 1,827 7,730 1,761 9,491 1,697 11,188 1,636 12,824 1,577 14,401 1,520 15,921 1,079 17,000 17,000 17,000 LUND2 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 17- Feb-94 ORIGINAL MARKET VALUE 12- 30 -24 -24 -0011 12 -30 -24-24 -0012 12 -30 -24-24 -0013 12 -30 -24-24 -0044 ORIGINAL TAX CAPACITY 12 -30 -24-24 -0011 12- 30=24 -24 -0012 12- 30 -24 -24 -0013 12- 30 -24 -24 -0044 ESTIMATED CONSTRUCTION COSTS ESTIMATED MARKET VALUE - BLDG ESTIMATED MARKET VALUE - LAND 12 -30 -24-24 -0011 12- 30 -24 -24 -0012 12 -30 -24-24 -0013 12 -30 -24-24 -0044 ESTIMATED MARKET VALUE - PROJECT ESTIMATED TAX CAPACITY CONSTRUCTION VALUATION TAXES PAYABLE ESTIMATED 1994 TAX RATE ESTIMATED TAXES ESTIMATED TAXES /SQUARE FOOT ADMIN FEES INFLATION PV RATE CITY OF FRIDLEY, MINNESOTA 139,700 12,300 6,200 9,100 112,100 7,068 622 314 460 5,672 80.00% 230,000 184,000 102,600 12,300 6,200 9,100 75,000 3.00% 4.60% 1994 1995 1996 REQUESTED TIF ASSISTANCE - 5.0% OF 340,000 (TOTAL COSTS) 1.163434 13,000 SF 10.00% 0.00% 7.50% 286,600 11,584 13,477 1.04 17,000 7.6 1 LUND2 PREPARED BY CASSERLY MOLZAHN & ASSOCIATES 17- Feb-94 BRIDGEWATER FlNANCW,GROUP December 17, 1993 Mr. Dan Ryan Mr. Scott Lund Rite -Way Mobile Home Repair, Inc. 6521 Old Central Avenue N.E. Fridley, Minnesota 55432 RE: SBA 504 LOAN APPLICATION Dear Dan and Scott: 7.7 After xeview of your financial statements- and- -loan request;- Bridgewater Finaaciif Group feels that an SB.A'SO4 loan is feasible for your proposed project in Fridley, Miriiiesota:.. Follo�virig is a:-brdaltdowri Qf the lroposed: -uses aid sources of funds for yotzi - project: USES . OF FUNDS Land Building Construction (Includes cnnTingencies Soft Costs SUBTOTAL Plus: SBA Debenture Pricing : TO_[ r USES SEE O FUNDS 1 L vary va . LJ SOURCES OF FUNDS Bank SBA (Includes Debenture Pricing Equity TOTAL SOURCES OF FUNDS 3 83,000 22.000 $335,000 5.000 4"2,!rl nnn $167,500 139,000 33,500 340 000 4205 Lancaster Lane North* Suite 1000• Minneapolis. MN 55441 • (612) 550 -9030• (800) 642 -6258• (612) 550 -9221 FAX W Mr. Dan Ryan : Mr. ScottLund December 17, 1993 Page Two d The soft costs are approximated as follows: Construction Interest $ 3,400 Bank Financing Points i 67 Title Insurance X460 Closing Fee 1,000 Mortgage Registration 714 . Appraisal. :.2;500 J -Envii drimental . Review 2; 000 Survey' 7 ,000 Lender's Attorney 54000 Contingency TOTAL SOFT COSTS :22:000. The rates and terms of the proposed financing is approximated as follows: Monthly Annual Source Amount Rate Term Debt Service Debt Service Bank $167,500 8.0% 20 Years $1,401 $1.6.012 SBA 139,000 6.9!0 20 Years 1.09 12.828 S2.470 5 29.640 � f 7.9 Mr. Dan Ryan = Mr. Scott Lund December 17, 1993 Page Three If you would like. to proceed with this financing, please execute the enclosed Retainer Agreements and return all three of them to our office along with a check for $1,500. You will then receive a checklist of the additional information we need to complete your loan package. You will also receive a Retainer Agreement for your files. We Iook forward to working with you on your project! Sincerely, ..0RIDGEWATER. FINANCIAL GROUP;' INC.: Deborah L:. Gustafson President a :. DLG /tlb Enc. cc: K. Wood AMP RT 3. i ZOA #94-01 Scott Lund N 112 SEC. 12- T. 30 to (D, Z gl > < z ID,� I I cr FIRESIDE VIEW AD1.1 21 AVE. 73 1/2 N.E. e*11 �x T t tp 14 02� ili) sPs — — Z! It CITY OF FRIDLEY -12 Lij +1 21 zz 3c-- C12, _T ew"r—V �� 4_4 -Alf m 3 2 FRIDLEY 7'E 7 -1 :2Z N 2.7 A7 /I AVDER,9 �h VL DRIVE DRIVE E4� MANOR W Z70N rlavT DEVELOPMENT 01, IOU 14� No.. - '03 15o Ti -51-1—COUNT -STATE AID +ftC,+ SEC. /1I to (D, Z gl > < z ID,� I I cr FIRESIDE VIEW AD1.1 21 AVE. 73 1/2 N.E. e*11 �x T t tp 14 02� ili) LOCATION MAP sPs — — Z! It -12 Lij +1 zz 3c-- _T ew"r—V �� 4_4 zriKr.ZIIUt DRIVE WALNUT MANOR W Z70N rlavT ji IOU 14� No.. - -51-1—COUNT -STATE AID +ftC,+ SEC. /1I 13 LOCATION MAP A "I ^ter; ,-,// a Vf� V) � ;011 0 "1-4 M,�NESOTA o: 7_OA #94-01 7q Scott Lund E - •jam. �• r1 , . _ 76TH' AVENUE 1 _ T a. p•' S-7, "ITH ` j- ,`,; `: " -Z `•:`' .,,;rte 757h -k E'J'JE N E i .1 M L UNQ / _ 4 J 4 >O S J 77JJOJ JO�O —T� ] ] ? -^ J •+] 7007700 � 7 s.. ] 77]7 JJJJDOJ s �E +6 fLA (` ]'JJJ 7 ] J7JOJJOOJ GJG`E �+N 7 7 7 J 7 70 770JJ00 1, ��` �]- ]7JJ7ooaoJ Z 9 1 7 7�7 7 0 7 J 7 0 0 0 0 0 J 17 ] 7 7] 0 7 0 0 0 0 0 0 �7]J77]00J0j J 7 O 0000]00 OC , O] ^J J J O J O O O O J O O C j JD' . 1 A•[A/ 3 H y • e t ooaoao�c 731/2 70 ''AVENUE NE. .� ,.?t' :3. y • •1)-• • 0 '?tilt - _ ••i•••�i f 11 :Ili ✓ % 0 z f�•� RTON • • • • r v-)ri;• - • / /iiv.T!�ANS 3 �. �iRF_rb T, DISTRICT LEGEND 1 R -1 ONE FAWHLT OWG'S Y -1 LIGHT INDUSTRIAL �n1 _ f l ' TWO FAMILY DWG's ��II J � - -�� A•] 1 � r' •' 14 i '• U q -A 11081LE HOME PARR S -1 HYDE PARR NEIGHBORHOOD ❑ ^ter; ,-,// a Vf� V) � ;011 0 "1-4 M,�NESOTA o: 7_OA #94-01 7q Scott Lund E - •jam. �• r1 , . _ 76TH' AVENUE 1 _ T a. p•' S-7, "ITH ` j- ,`,; `: " -Z `•:`' .,,;rte 757h -k E'J'JE N E i .1 M L UNQ / _ 4 J 4 >O S J 77JJOJ JO�O —T� ] ] ? -^ J •+] 7007700 � 7 s.. ] 77]7 JJJJDOJ s �E +6 fLA (` ]'JJJ 7 ] J7JOJJOOJ GJG`E �+N 7 7 7 J 7 70 770JJ00 1, ��` �]- ]7JJ7ooaoJ Z 9 1 7 7�7 7 0 7 J 7 0 0 0 0 0 J 17 ] 7 7] 0 7 0 0 0 0 0 0 �7]J77]00J0j J 7 O 0000]00 OC , O] ^J J J O J O O O O J O O C j JD' . 1 A•[A/ 3 H y • e t ooaoao�c 731/2 70 ''AVENUE NE. .� ,.?t' :3. y • •1)-• • 0 '?tilt - _ ••i•••�i f 11 :Ili ✓ % 0 z f�•� RTON • • • • r v-)ri;• - • / /iiv.T!�ANS 3 �. �iRF_rb T, DISTRICT LEGEND 1 R -1 ONE FAWHLT OWG'S Y -1 LIGHT INDUSTRIAL �n1 q -T TWO FAMILY DWG's L -: M-] HEAVY -3USTRIAL A•] GIN MUL TIME over-1 -. PUD PLANNED UNIT DEV• '• U q -A 11081LE HOME PARR S -1 HYDE PARR NEIGHBORHOOD ❑ P PURIIC FACILITIES L7 5-7 REDEVELOPMENT DISTRICT ❑ C' • LOCAL RUSIN(ST J 0-1 CREEK A RIVtA PRES(HVATION F I C': U'] C4I1 rC at .qCn A I 70NINCB MAP I a � f' I I I I f I II{ ®Z t I I I �--j, IIIIjr r. 1114 � : jig rr I I� 0 i 1 m •' � k" resin i twi I 3is a N i FFF � R panl ]aooS r n it 10 -76# VOZ 1 PUW RITE - WAY [:f UMDS ra Mobile Home Repair I�+ ��] Fridle . Minnesota — — H y X e ee ►r �j 1i 1T.12 OUSING and REDEVELOPMENT AUTHORITY 7.13 COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER CITY OF FRIDLEY DATE: July 12, 1990 TO: Housing and Redevelopment Authority FROM: Jock Robertson, Executive Director of HRA SUBJECT: Proposed Auto /Service Mall and Full Service Restaurant on the Alvan Schrader Property Alvan Schrader is proposing to construct a 26,300 square foot auto /service mall and a 4,000 square foot full service restaurant on his property located in the northeast corner of 73 1/2 Avenue and Highway 65 (see attached site plan and rendering). Mr. Schrader will need to file a rezoning application to rezone a portion of the property from M -1, Light Industrial, to C -3, General Shopping Center District, as well as file a special use permit for automotive uses in a C -3 district. The proposed project would require the purchase of 36,000 square feet from Royal Electric for $77,000. It would also require 20,000 square feet of City owned land. At this time, the Council has not considered selling this land (see attached map and memo from John Flora). Further, the City has informed the developers that the City is not inclined to condemn frontage road right -of -way through the trailer court to the north. The property is located in the Onan Tax Increment Financing Redevelopment District No. 10. Mr. Schrader has petitioned the HRA for assistance on land assembly and cost writedown. The City Council was individually polled on this proposal. All were negative on TIF assistance; and because the City land may be needed for a City project, approval of sale is not likely at this time. If the HRA wishes to proceed, we recommend that you consider a 2- 3 year pay -as- you -go grant of an amount yet to be negotiated. Based on an estimated market value of $1,700,000, the pay- as -you- go grant would range from $85,000 - 136,000 following the 5 -8% precedent of Northco. JR:ls M -90 -482 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 55432 7.14 I. f 7.15 HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19 .1990 PAGE 8 Mr. Herrick stated it m!t- t be helpful for the HRA to have additional information what other "tools" or options are available to the HRA. Ma a Mr. Robertson or Mr. Casserly can obtain that additional - information for the HRA. Mr. Rasmussen agreed. Iie w uld:like to have more information about other options. 'He sta ed he liked the Habitat for Humanity project and has personally c ntributed to that project. Mr. Commers asked staff to pr \thnext or the HRA a brief description other programs tht be available to the HRA in order to maintain low and modncome housing in the City of Fridley. Mr. Robertson stated they can t in about two months. Mr. Robertson stated that if eeds some consulting time to analyze this project either i 60 days or after that, is the HRA authorizing staff to nt the policy adopted and to ask ASPRE for $7,500 to defer nsulting expenses. Ms. Schnabel stated that since the has adopted the Policy Statement to defer administrative co ts, they should start implementing it. However, she would ave no objection to reducing the amount in this situation The HRA members agreed. Mr. Commers asked staff to get some est mate of the consulting cost and time that might be needed from r. O'Meara. Mr. Robertson stated it is staff's intent to make any analysis as cost efficient and time - limited as possib e. 3. REQUEST FOR TIF ASSISTANCE TO FRIDLEY AUTO /SERVICE MALL: Mr. Robertson stated Mr. Alvan Schrader is proposing to construct a 26,300 sq. ft. auto /service mall and a 4,000 sq. ft. full service restaurant at 73 1/2 Avenue and Highway 65. The property will need to be rezoned from M -1, Heavy Industrial, to C -3, General Shopping District, and a special use permit will be needed for automotive uses in a C -3 district. Mr. Robertson stated the 36,000 sq..ft. from Royal City -owned land. At this interested in selling the Director, has stated that for another City well and proposal will require the purchase of Electric, and about 20,000 sq. ft. of time, the City Council is not land. John Flora, Public Works this land is one of two possible sites treatment plant. 7.16 HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19 1990 PAGE 9 Mr. Robertson stated the Council members were polled on this proposal, and they were not particularly positive about recommending tax increment assistance for this project. He had informally polled the HRA last month and had received the same reaction: Mr*: Schrader has, asked that they ..be able -to male a formal presentation to--the HRA, and Mr. Mike Schrader and-Mr. - Paul Noyes• are- representing. the applicants: Mr. Robertson stated that the City Council has asked the HRA, whenever they can, to consider a pay -as- you -go type of grant. Giving preliminary information from the developer, Leon Madsen, City Assessor, has estimated a market value of $1.7 million. If the HRA wishes to proceed, staff recommends a 2 -3 year pay-as- you-go grant of an amount yet to be negotiated. Based on an estimated market value of $1.7 million, the pay -as- you -go grant would range from $85,000 - 136,-000 following the 5 -8% precedent for Northco. Mr. Mike Schrader stated they are at the meeting to try to obtain a final determination as to the HRA's interest in the tax increment financing as described by Mr. Robertson. The land will be assembled through a purchase of 36,000 sq. ft. from Royal Electric, and there has been some dialogue with the City regarding the City -owned land. They .do have an option on the Royal Electric property, but there are issues regarding possible municipal waterworks on the City -owned property that will have to be addressed by the City Council. Mr. Schrader stated the outstanding portions are owned by his father, Alvan Schrader, the developer. This property was previously used as a retail mobile home sales center until about three years ago. There were several model homes on the lot and a permanent office that have since been removed, so it is now vacant land. Mr. Schrader stated the subject site is in a redevelopment district within the tax increment program, and they have asked for a preliminary type of review from the HRA in order to determine how they can move forward. He stated they feel the 26,000 sq. ft. auto /service mall (of which there are 8 others in the Twin Cities metropolitan area) and free - standing restaurant is within the designated use for the redevelopment area. It will also provide an opportunity for the City of Fridley to diminish the number of stop /shop type of service repair stations in the City and, at the same time, give the developer to the opportunity to have a auto /service mall that will have top rate service of automobiles and light trucks. They have incorporated into this mall the best items, in terms of landscaping, design, and the restaurant, from the other eight existing auto /service malls in the metropolitan area. As far as other uses that could go on this property,.this auto /service mall represents the highest and best use of the property. 7.17 HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19 1990 PAGE 10 Mr. Schrader stated that as far as tax benefits to the City, this development would give the City the opportunity to greatly raise the tax return on this 'land which is approximately $9,000 /year now to upwards of $100,000 /year and establish-a precedent in the area which is surrounded by junkyards, light industrial-, and a*. mobile'homo park. The mall will provide approximately 200 additional jobs'for the City. Mr. Schrader stated they have letters of intent for 10,000 sq. ft. of space and will have letters of intent for another 12,000 sq. ft. in the next 10 days. The restaurant will probably be a Denny's Restaurant or Country Kitchen. Mr. Rasmussen stated he certainly liked the proposal. It would be one of its kind in -the Fridley area. Mr. Commers stated the HRA has to answer the questions of whether or not they want a continual proliferation of strip malls and whether they should give assistance to these kinds of developments. (Mr. Prairie left the meeting at 9:00 p.m.) Ms. Schnabel stated that if this concept is approved and the mall built for an auto services type of development, would that limit the usage of that development to different type of tenants in the future? Mr. Schrader stated it would be somewhat limited. It is a specialized mall; however, most of the build -out is on the interior. Ideally, these tenant spaces are structured on long term, triple -net leases, whereby the tenants are committing themselves and understanding that the spaces are accommodated to their use and this is a long term relationship. They have had excellent response regarding the site from national companies who review sites all over the country. The developer is very conservative in nature and would not proceed if he were not confident that the leasing will continue at the rate it is and that they will be able to obtain the preleasing necessary to obtain financing. Mr. Robertson asked Mr. Schrader how critical it is for their business to have the frontage road extended to the north to Viron Road. It is an area which the City has told Mr. Noyes and Mr. Schrader that they will have to take the initiative if they wish to pursue that right -of -way. Mr. Schrader stated the frontage road stops at the mobile home park between Viron Road and the subject property. They have been marketing the project with the frontage road as it exists. If the frontage road was extended to Viron Road, it would greatly -[.As HOUSING & REDEVELOPMENT AUTHORITY MTG. JULY 19 1990 PAGE 11 enhance their project as far as the traffic level; however, they are not in any position to deal with the present landowner to initiate eminent domain proceedings. It is an issue that will be discussed with the City Council. Mr-. Herrick asked if the developer has approached -the owners of* the- mobile.hame park.-about the owners' willingness to sell the right -of -way for the extension of the service road. Mr. Schrader stated, yes, they have approached the owners and have made several offers to purchase, but the owners are unwilling to sell. Ms. Schnabel asked what happens if the City does not sell its property to Mr. Schrader. Mr. Schrader stated that piece of property is a key to'the auto /service mall because it takes the space where the restaurant would be located. It is an important issue that will have to be discussed with the City Council. Mr. Meyer stated the objections he had to the Fridley Town Square proposal on the 10,000 Auto Parts site are not present in this proposal. Those objections were traffic problems, -the potential t danger to the residential neighborhood, and the prevalence of strip shopping malls. He stated he thought the auto /service mall was an interesting development. Ms. Schnabel stated it is hard for the HRA to proceed until they know what the City Council is going to do. She did not have any real problems with the concept. She did like the restaurant as part of the development as it seemed to enhance the development. Mr. Rasmussen stated he is willing to listen in terms of tax increment financing if the developer is able to proceed with the project. Mr. Meyer stated he was also. Mr. Commers stated that irrespective of the Council's indication, it appears that the HRA is willing to look at the project if the developer is able to put the project together. The HRA is not indicating a rejection out of hand, and they are willing to look at it if the Council approves it. 4. TIF DISTRICT PLANS: Mr. Robertson stated that at the Apr'1 18, 1990, meeting the HRA recommended the City approve the spe 'fic development plan and proceed with giving notice for a publ c hearing to consider expanding the redevelopment area by cr ating TIF District No. 11 i Community Development Department L i HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley DATE: March 10, 1994 TO: William Burns, Executive Director of HRA FROM: Barbara Dacy, Community Development Director SUBJECT: Update on Demolition of Rice Plaza Demolition of Rice Plaza began on March 2, 1994. A majority of the building as of this.date has now been removed. The contractor will be removing the concrete slab, footings, and the blacktop next week. The asbestos and florescent light bulbs have been disposed of in accordance with the Environmental Protection Laws. The light ballasts, however, must be stored on the property until the Environmental Protection Agency has issued to the Fridley HRA what is known as an EPA number for.proper disposal. Currently, the ballasts are stored in a small barrel which has been locked and attached to the telephone pole on .the property.' We anticipate that it may have to remain on the property until the beginning of April. Should you have any questions, please feel free to contact me. BD:ls M -94 -125 9.1 Community Development Department D HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley TO: William-W. Burns, Executive Director, FROM: Barbara Dacy, Community Development Director DATE: March 10, 1994 SUBJECT: Redevelopment of the Southwest Quadrant To follow is a general outline of staff's presentation Thursday night regarding redevelopment of the southwest' quadrant. This presentation will also.be made to the City Council. The purpose of the HRA's discussion is to answer the following questions: 1. What is the desired land use scenario? 2. What is the acceptable level of subsidy to achieve the desired land use scenario? 3. What is the desired timeframe to accomplish the preferred development plan? PRESENTATION OUTLINE I. We will summarize key points from our meetings with housing developers: A. George Sherman and Associates B. Bel Aire Construction (Jim Winkels) and LaNel Financial Group. C. Laukka /Jarvis (Larry Laukka) D. Rottlund Development (Todd Stutz) In general,.all agreed that housing is a viable alternative in the southwest corner. Since the commercial market is well saturated, the only opportunity for commercial development would be a small neighborhood oriented development probably smaller than the 25,000 square foot strip center in the northeast corner. It would probably be located in the immediate vicinity of the intersection. All of the developers noted that extensive landscaping, screening, and amenities would have to be provided. All agreed that if housing is pursued a for sale townhome would be priced between $80,000 to $110,000. Rottlund was r4 i 9.2 Redevelopment of the Southwest Quadrant March 10, 1994 Page 2 enthusiastic about this site for one of their town home products,- but Bel Aire and Sherman . prefer the market rate, multi -story apartment project for the senior,* empty nester, -or family market. Laukka /Jarvis indicated a willingness to evaluate a high'.density condominium proposal. A brief summary of each our meetings is attached. II. We will present three tax increment cash flow scenarios (Jim Casserly will present this analysis at the meeting): A. Low density townhome proposal (8 -10 units /acre) B. Mixed use proposal (market rate rental.units, townhomes, and a small amount of commercial development) C. High density condominium proposal III. We will review recommended preferences for physical site design features. We are in the process of taking pictures of developments that the above developers have completed to provide an idea of the appearance of the project. We will also review the status. of existing utilities and possible site improvements needed for redevelopment. A. Engineering issues including water, sewer, storm sewer, and stormwater management. B. Building and landscaping specifications. C. Internal site improvements including recreation uses, day care, lighting, private versus public roads. IV. We will present an implementation plan. The HRA needs to determine how fast redevelopment should proceed on the property. Here is a preliminary action plan: A. Identify preferred development. B. Identify incentive package. C. Negotiate deal with developer and development agreement. D. Negotiate property acquisitions and complete acquisition approvals. E. Demolition of remaining buildings. �..: M -94 -126 I H W A H a w 04 0 a. H H v 19:60 t G. T T a!- W a H W4 Z)a ar a� f4 14 as U a oc H EH a] 94 0940 1 � z 64WI I � I N I M I r t - I M I � I I I I I Iw I o �a ul Ln O 0 O 0 0 a � to i gK � t i aai 1 Gd C) 1 W 1 I C 1 I 1 i i to 1 1 M rn 1 1 In ON H I W U 1 .- I L] 1 fx i _ 1 1 1 P7 + a +ti W I ?C 1 6 t I i I 1 f 1 O 1 1 0 E4 C3 1 1 O 1 a4 .1 o 1 (Y� 1•i 1 N I 1 1 1 t 1 ( 1 t4 ad 11*41 i H 1 OOW I H I W t H R1 1 z 04 I fn 1 1 1 1 1 1 1 1 1 1 1 I 1 t I 1 1 1 1 1 1 1 1 1 1 1 1 i °ai0U a n a O sN rn is too 0 NP r M 00 O 0 M %a 0 0 a a In r N 0 t7+ 0 t0 to c to M N th d� O N N %D HW H Zo a O O N V' V' r r W T M N � N tD to N � a LM o1, T m � to o in 0 N m N 0 0 0 0 O N 0 a fA M N -4. 0 0 0 0 o m m O =ri t, m M N N N r N 0 r M �0 Q Q a �a 1- co N O N •P 0 0 o O a o � O .n r � rn V T .-- t\ m cn H H � U Q G O �O N t"I az H C!1 Q' ett N a «mil W IR w a U: w Q ra a a p 9.3 to > V U to •t H h In to H Zr -� & I- as �bg z a w z a % U "HH!- 11=11,4 — ^T- 9.3 9.4 SUMMARY OF MEETING WITH GEORGE SHERMAN; JANUARY 6, 1994 1. Sherman Associates is a housing development company based in Minneapolis. They have constructed 1,350 housing units in Minnesota, the Dakotas, and Wisconsin. They build both single family and multiple family projects. They also do some commercial work'and have developed contacts withy clinics, hospital groups,-and banks.-- 2. They have used low income tax credits in a number of their projects. Sherman feels that lenders like the tax credits because 40 -450 of equity is required. Sherman also reported that utility companies are diversifying their investment portfolios and are seeking to develop these types of projects. 3. Sherman expressed some hesitation about for sale townhomes in the southwest quadrant. He felt that the adjacent apartment buildings- should be rehabbed. He .believes there is an adequate market for seniors as well as moderate income market rate units. 4. He suggested a density of 12 -15 units /acre and in the case of for sale housing, a price range beginning at $80,000. 5. He expressed willingness to explore joint ownership /management of rental units. 9.5 SUMMARY OF MEETING WITH JIM WINKELS, SID INMAN, AND GREG BRONK; MARCH 1,1994 1. Jim Winkels of Belair Construction and Greg Bronk of LaNel Financial Group prepared a preliminary site plan to develop the southwest quadrant with 142 rental units and about 3 acres for commercial development. Two 64 unit buildings with underground parking is proposed for market rate rental or for seniors. About 14 rental townhomes are also proposed. 2. LaNel Financial Group developed the St. Anthony apartments in 1988. One of those buildings was strictly for seniors, the remainder was for market rate. The project was developed at a density of 25 units /acre. LaNel also built a 110 unit development in Coon Rapids. 3. Sid Inman asked if recertifying the Center City district would be an advantage for the HRA. Casserly was going to research this. 4. They also propose rehabilitation of Cherrywood Apartments. It is estimated that $3,000 /unit is necessary. 5. They submitted a preliminary sources and uses statement which indicated a tax increment request of $1,300,000. 9.6 SUMMARY OF MEETING WITH LARRY LAUKKA, PETER JARVIS, AND BOB LONG; FEBRUARY 22, 1994 1. Laukka developed the Centennial Lakes and Edinborough condominiums and townhomes in Edina. Laukka cautioned that the project was one of a kind in terms of a public assistance. Even Casserly noted that some of the legal issues about the project became a basis for state law changes. Laukka also noted that the condominium density ranged from 36 to 40 units /acre. The project also achieved the City of Edina's housing objective which was to create opportunities for young people to live and remain in Edina. 2. Jarvis was cautious about the ability to achieve a residential community in the southwest quadrant. The surrounding uses (apartments and RAO manufacturing), traffic, and economics may make this a.difficult project to achieve. He is also.not enthusiastic about retail given previous history. He also noted we are competing with higher amenity sites in adjacents communities. 3. Laukka said we needed to create a sense of "security" for people to buy for sale housing at this location. He would not do a townhome project at the site but would consider a condominium project at a higher density with underground parking. 4. Both Laukka and Jarvis emphasized the need for the City to want the project. Without local leadership, it has been their experience that a project will not succeed if the community leaders are hesitant /noncommital. They asked us if the political will exists in Fridley to do a project and to spend the money it may take to achieve it. 9.7 SUMMARY OF MEETING WITH TODD STUTZ AND ROTTLUND DEVELOPMENT; MARCH 2, 1994 1. Todd reviewed the basic characteristics of thier townhome developments in Columbia Heights, Roseville, Falcon Heights, and Inver Grove Heights. Rottlund constructs for sale . products only: Their units are approved for FHA. and VA financing. 2. Rottlund is also proposing a townhome development in New Brighton in a redevelopment district similar to Fridley's site. The site is located at the southwest corner of 10th Street NW and 5th Avenue NW. About 76 townhome units are proposed aimed at the empty nester market (master bedroom on the first floor). Twenty of the townhomes will appear as "row houses" since they wrap around the corner of the intersection. The remaining units are in groups of 4; 6, or 8 unit buildings. 3. New Brighton is providing tax increment assistance but Rottlund paid for the property and will be completing all of the site improvements. 4. Stutz thought that the southwest quad would be a suitable site for townhomes, but would want to buffer noise impacts from University and Mississippi. 5. A single story product is usually built at 6 units /acre and a two story product at 10 units /acre. The value of a townhome at the southwest quad will probably range from $76,000 to $120,000. 6. Rottlund would not be interested in constructing retail on the property. r Community Development Department PLANNING DIVISION City of Fridley DATE: March 8, 1994 TO: Barbara Dacy, Community Development Director FROM: Lisa Campbell, Planning Associate SUBJECT: Public Comment: Lou Lundgren Development Barb, there were three public meeting regarding the Lou Lundgren development: one neighborhood meeting and two public hearings. The Housing and Redevelopment- Authority and the City Council each conducted a public hearing. The neighborhood meeting occurred on October 31st, with a one day notice to residents. The public hearings were conducted two weeks later on November 14, (HRA) and November 18, (CC). There were no notes or minutes in the files from the neighborhood meeting. There was apparently a deadline of December 31, 1985, issue the bonds. This deadline was an issue for the residents. Other issues for the residents included: TRAFFIC: This concern was mentioned 19 times over the course of the two public hearings. This concern was mentioned 19 times over the course of two public meetings. Comments included concern about additional traffic in the neighborhood, a street connection from the neighborhood to Mississippi Street, additional traffic congestion at the intersection of Mississippi Street and University Avenue, and safety concerns. PEDESTRIAN TRAFFIC: Was mentioned once. It was suggested by one resident that a tunnel be constructed to handle additional pedestrian traffic. HEIGHT: The height of the building was the second most (scale) frequently expressed concern of the residents. The original proposal was 12 stories with 243 units. As a result of the public comment it was reduced to 6 stories with 119 units. 9.9 Public Comment: Lou Lundgren Development March 8, 1994 Page 2 0•.1 •.hl FRIDLEY:" Apparently some residents were aware that this area was considered, for planning purposes to be Downtown Fridley. They questioned whether or not a upscale apartment complex was an appropriate development for a downtown area. Council was encouraged to wait for a more appropriate commercial development. DRAINAGE: Residents to the south of this site noted that during heavy rainfall Sylvan Park turns into a lake. .What will be the effects of more development to the north of .their homes. 7 CAPACITY: Residents expressed concern that the development would require additional sewer capacity and wanted a written statement from the City that they would not be assessed for these services. I•i:�� FINANCING: Residents questioned the public purpose in financing an upscale apartment complex. The Finance Director explained that the City was simply a conduit through which the federal bond money flowed to the developer. LOCAL CONTROL: Residents said that they did not see why a developer, who does not live in their community, should have more power to shape their community than the local residents who will be affected by the development. PUBLIC NOTICE: Residents complained about the public notification process and limited time available for public discussion. TRUST: Residents said they were concerned that the Council was not listening to them and were encouraged to take the time to effectively and sincerely address their concerns. DAIRY QUEEN: Don Fitch expressed concern about the continuing viability of his Dairy Queen franchise if the development went forward. 9.10 Public Comment: Lou Lundgren Development March 8, 1994 Page 3 At the Council meeting, Councilmember Brian Goodspeed moved that the item be tabled. He did not think there had be inadequate public notice. He did however, believe that more time was needed to address resident concerns. Attached for-your review are the minutes from both the HRA and Council public hearing and a chronology of events developed by Samantha Orduno dated January 27, 1986. lc M -94 -123 i DATE: TO: FROM: SUBJECT: Community Development Department HOUSING AND REDEVELOPMENT AUTHORITY City of Fridley March 10, 1994 vnlilliam Burns, Executive Director of HRA Barbara Dacy, Community Development Director Grant Fernelius, Housing Coordinator Summary of Customer Service Surveys During the month of.January; surveys were-mailed out'to. the home- owners who applied for our Housing Rehab' Program. Fifty -seven surveys were mailed out, and 26 were returned for a total response rate of 45 %. In general, customers responded favorably to the questions asked. Most felt they were treated courteously by staff and had their questions answered satisfactorily. In addition,.many agreed that. they received application materials promptly and that the materials were easy to read and understand. There was, however, less satisfaction with the application process. One -third felt the process took too long. Attached for your review is a summary of the survey. It should also be noted that we are considering a separate survey for those individuals who will have gone through the entire process including loan approval. Please let us know if you have any questions. GF:ls M -94 -121 v V Housing Rehabilitation Program Summary of Customer Service Surveys .Customers surveyed.... ...........57 . Surveys returned..... 26 Response rate ......................45% 1. How did you learn about the Fridley Housing Rehabilitation Program? 48% City Newsletter 32% Fridley Focus 20% Friend or relative 0% Fridley Municipal T.V. Channel 31 0% Other 2. When I called City Hall for information I was treated courteously by City Staff. 3. All of my questions were answered satisfactorily. 4. I was sent application materials promptly. 5. The prescreening appli- cation was easy to understand and complete. 6. I understood the pre- screening application process and how long it would take. 7. I was notified within a reasonable period of time as to my elig- ibility for the program. 8. I would apply for the program again if the opportunity became available. 9. If denied assistance, I understood the reason why. Strongly Strongly Don't Agree Agree Disagree Disagree Know 56% 44% 0% 0% 0% 45% 52% 3% 0% 0% 56% 43% 0% 1% 0% 37% 62% 1% 0% 0% 28% 44% 20% 8% 0% 26% 50% 15% 9% 0% 39% 52% 3% 3% 3% 0% 57% 0% 0% 42%